Other Trustees Present

Committee Members Absent

Item 1Call to Order

Item 2Minutes (March 26, 2010)

Chair Kendrick asked for approval of minutes from March 26. The minutes were approved as presented.

Item 3 Open Comments

Chair Kendrick offered opportunity for comments from the public. Upon receiving none, she continued with the meeting.

Item 4 Approval of the Prohibited Use of Non-Motorized Vehicles Regulation

Chair Kendrick asked Vice President Serwatka to speak about this item.

Vice President Serwatka stated that the purpose of this item was to clean up wording and add a proposed amendment which would make it a code violation to fail to dismount a non-motorized vehicle when using a designated crosswalk. He clarified that the proposed amendment was in an effort to prevent serious accidents.

Vice President Serwatka explained that this regulation was vetted through the university’s current practice and there was opposition from bicyclists. He clarified that the administration held discussions with this opposition.

Vice President Serwatka asked Mr. Mark Richardson, Associate Chief of Campus Police, to add comments. Mr. Richardson stated that the policy focused on what would be prudent and safe for non-motorized vehicle use. He noted that, without some kind of enforcement the university could not expect compliance.

Chair Kendrick asked for a MOTION to approve amendments to the prohibited use of non-motorized vehicle regulation. A MOTION was offered by Chair Taylor and seconded by Trustee Byll-Cataria. The MOTION was unanimously carried.

Item 5 Educational Plant Survey

Chair Kendrick asked Vice President Shuman to present this item.

Vice President Shuman stated that every five years a team from the Board of Governors and other universities would create a committee to review the use of PECO dollars. She clarified that any project that included PECO funding must be included on the Educational Plant Survey and the master plan. Vice President Shuman presented highlights of the survey including comparison of needs, in order and category.

After trustees asked questions, including clarification on surplus, Chair Kendrick asked for a MOTION for approval of the Educational Plant Survey. A MOTION was offered by Trustee Byll-Cataria and seconded by Chair Taylor. The MOTION was carried as presented.

Item 6 UNF’s Financial Statements Audit from the Auditor General

Chair Kendrick asked Vice President Shuman to present this item.

Vice President Shuman presented the outcomes of the report and provided comparisons to other SUS institutions. Trustees commented on the quality of this audit and the administration provided commentary on the SUS audit process.

This item was presented for information only. No additional action as required.

Item 7 Office of Internal Auditing – Audit Update

Chair Kendrick asked Mr. Robert Berry, Director of the Office of Internal Auditing, to speak about this item.

Mr. Berry presented his report, noting that his office’s recent loss of one person had not hindered completion of the audit plan. He stated that four audit engagements were complete and one would be started in June.

Chair Kendrick stated that she had met with Mr. Berry, at which time they had discussed completion of the audit plan. She noted that currently 85 percent of audit issues were closed and the Office of Internal Auditing was in the middle of the risk assessment process. She clarified that a report on risk assessment would be provided to this committee, for approval, at a later date.

This item was presented for information only. No additional action was required.

Item 7 Quarterly Budget Report

Chair Kendrick asked Vice President Shuman to speak about this item.

Vice President Shuman stated that the E&G budget was well within the expected numbers. She reported that only 81.5 percent of the total budget was expended, compared to 83.3 percent average from previous years. She spoke about central reserves, noting that funds were set aside for state call back and to replace stimulus funding.

Vice President Shuman spoke about the auxiliary status report. She provided commentary on current year activity and those businesses showing negative balances and clarified that at this time the university did not anticipate any areas going from positive to negative.

Vice President Shuman reported that at this point, the university did not anticipate any budgetary issues at the end of this fiscal year.

This report was provided for information only. No additional action was required.

Item 8 Treasurer’s Report

hair Kendrick asked Vice President Shuman to present this report.

Vice President Shuman reported that as of the end of April, the university had more investments than cash in the bank. She noted that the benchmark, Merrill Lynch, was at 4.3 percent and clarified that the university’s managers were a bit more conservative.

Vice President Shuman stated that SBA funds were still restricted but that the university was content with the payout of ± $30,000 per month.

This item was provided for information only. No additional action was required.

Item 9 Adjournment

Chair Kendrick stated that the committee would proceed with budget discussions immediately following adjournment. She adjourned the meeting.

University Budget Discussion

Vice President Shuman began this discussion by providing a budget summary, noting that the overall budget increased to $5.1 million, which included funding for a 3 percent raise for faculty and staff. She mentioned that concerns for next year were the elimination of stimulus dollars and the state’s projected budget shortfall.

Vice President Shuman talked about the budget process which included a controlled spending committee which denied $40,000 worth of requisitions. In addition, there were 16 percent fewer requisitions. Furthermore, a vacancy pool continued its review process.

This discussion continued addressing the possibility of budget reductions for 2011/2012 which included cuts in general revenue and stimulus monies. Additional reductions were discussed for the in-state/out-of-state mix and funding for financial aid. Vice President Shuman noted that in the 2010/2011 proposed budget, increases exceeded reductions.

Budget increases were talked about which included tuition increases, a tuition differential, lottery funding and annualized tuition. The discussion also included the restoration of nonrecurring general revenue and restoring stimulus funds. Vice President Shuman noted that lottery funding was still owed for the current budget year.

Vice President Shuman talked about divisional budgets in 2009/2010, noting that each division began their fiscal year by taking a budget cut. She enumerated each division’s cut and moved on to discuss divisional reductions and reallocations for the same budget period. In this discussion, she highlighted divisional reallocations and reductions.

This discussion shifted to recurring resources for 2010/2011 which included an adjusted base allocation of $126,336,369 and a new E&G funding allocation of $131,414,782. Funding sources, including recurring and nonrecurring allocations, were discussed. These included $12,592,438 in recurring and $13,053,372 in nonrecurring – including $7,339,025 recurring allocations for reserves.

Vice President Shuman talked about reserves, including state call backs and the replacement of stimulus dollars. She noted that rating agencies felt a best practice was to reserve about 3 percent and the proposed budget held 3.25 percent of the recurring budget in reserves.

The discussion addressed FTE -- funded, actual and projected – noting that 10,000 FTE was funded but the university was likely to enroll 10,146 or more – which the administration felt was about right.

Vice President Shuman moved the discussion to address the strategic plan. She presented five goals, including accomplishments and challenges, which were addressed during the current fiscal year. She then connected each one to the strategic plan. This discussion included tuition increases, differential fees and possible academic enhancement fees.

Vice President Shuman concluded this discussion by addressing what the proposed budget did not allow the university to do. She spoke about student-to-faculty ratios, size of student body, knowledge-based initiatives and faculty and staff salaries.

Chair Kendrick reminded trustees that the budget would be discussed a second time in June before it was presented for approval June 24. She mentioned that the previous year’s budget was well managed with a focus on quality and access. Chair Kendrick adjourned this meeting.